IPO

Report: Instacart Talks To Bankers About An IPO

Instacart Announces Deal With 7-Eleven

Representatives of grocery-delivery powerhouse Instacart have met with investment bankers to explore taking the company public, the Financial Times (FT) reported.

News of the potential public offering comes as Instacart announced on Thursday (Oct. 8) that it had received $200 million in new capital from existing investors Valiant Peregrine Fund and D1 Capital Partners, boosting Instacart's valuation to $17.7 billion.

"Instacart’s fundraising came as it held discussions with banks about a long-awaited public offering, which could come as soon as the first half of next year, according to people with knowledge of the talks,” FT reported. “The company declined to comment.”

An Instacart IPO would likely be one of the biggest in the U.S. next year, FT reported.

Instacart uses smartphone apps to connect customers with "shoppers" who pick up goods and deliver them to the customers. Instacart states in promotional materials that it has relationships with 500 retailers that have 40,000 locations in the United States and Canada.

In an announcement regarding the new funding, Instacart said on its website: "We expect to deploy the new capital in a number of ways, including: product development focused on introducing new features and tools to enhance the customer experience, continued investment in Instacart Enterprise to support retailers’ end-to-end ecommerce needs, and further investment in Instacart Ads to help connect Consumer Packaged Goods (CPG) brands of all sizes to customers shopping online from their favorite local retailers.”

"Our conviction in the strength of Instacart's management team and business model continues to grow as we've watched the company lead this important industry during a period of unprecedented growth,” Dan Sundheim, founder of D1 Capital Partners, said in a press release. “The opportunity for Instacart is significant, and we're proud to once again increase our investment in the business.”

Instacart said it has already surpassed its 2025 milestones and is tracking to exceed $35 billion in grocery sales in 2020, PYMNTS reported.

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NEW PYMNTS DATA: HOW WE SHOP – SEPTEMBER 2020 

The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.

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